Vaping liquid excise tax to be implemented

An excise duty on vaping products, as announced in Budget 2022, is being implemented on October 1, 2022 through the introduction of a new excise duty framework.  The excise duty applies to vaping substances that are manufactured in Canada or imported and that are intended for use in a vaping device in Canada.

Manufacturers of vaping products are required to get a vaping product licence from the Canada Revenue Agency (CRA).  Importers are required to apply for a registration from the CRA.

Manufacturers and importers are also required to register for the vaping stamping regime. All vaping products entering the Canadian duty-paid market are required to be packaged with an excise stamp affixed to the product. The excise stamps shows that duties have been paid.

The Canada Revenue Agency (CRA) has published information and rates that may be helpful.

The Canada Border Services Agency (CBSA) has publish a D-Memorandum providing information concerning the administration and enforcement.